Business
Shein Finally Shows Customs Fees Upfront for South African Shoppers
A win for frustrated buyers
If you’ve ever ordered from Shein and felt ambushed by surprise charges weeks later, there’s good news. The fast-fashion giant has introduced a new feature for South African customers: estimated customs duties and taxes now appear at checkout before you hit pay.
Until now, buyers often received emails from couriers demanding extra payments long after parcels had landed. Some packages were even held at the border, causing delays and frustration. With the new system, customs fees are calculated and displayed on the order summary, giving shoppers clarity on the full price upfront.
Shein said the change came after South African customers repeatedly asked for transparency. It also comes at a time when local authorities are cracking down on loopholes used by international e-commerce platforms.
SARS tightens the rules
For years, foreign retailers benefitted from concessions that let shipments under R500 enter South Africa at a flat 20% duty rate. The allowance was introduced in 2007, but it has now been withdrawn by the South African Revenue Service (SARS).
SARS commissioner Edward Kieswetter explained that the move was necessary to enforce compliance with the Customs and Excise Act. The change follows a 2024 clampdown, where VAT was added on top of the 20% flat rate. Now, with concessions being phased out completely, foreign purchases will face higher duties and VAT.
Retailers like Shein and Temu relied heavily on the old system. Some sellers were even accused of splitting orders into smaller parcels to sneak under the R500 threshold.
The bigger fight: local vs foreign
This debate has become more than a question of checkout clarity. It’s about fairness in the retail industry. Shein and Temu together made around R7.3 billion in sales in South Africa in 2024, which amounted to more than a third of all online clothing purchases.
Local retailers argue that they are competing on uneven ground. While South African stores pay full duties and taxes, international players undercut them with lower prices and take profits out of the country’s value chains.
Consumer protection concerns
There’s another problem: accountability. Queen Munyai, CEO of the Consumer Goods and Services Ombud, says complaints about online transactions are growing each year, especially involving foreign platforms.
She explained that South African laws like the Consumer Protection Act only apply when both the consumer and the supplier are based here. This makes it almost impossible to hold foreign platforms accountable when something goes wrong.
“If South African suppliers want to do business abroad, they face strict requirements. It should be the same here,” Munyai argued, calling for updated laws that ensure fairness for both customers and local businesses.
What it means for shoppers
For South Africans, Shein’s new checkout feature brings welcome relief. At least buyers now know the real cost of their order before paying, instead of facing nasty surprises later. But with SARS phasing out concessions and tightening import rules, online shoppers should still prepare for higher overall costs.
The broader conversation is far from over. The tug of war between global e-commerce giants and South African retailers is intensifying. And while Shein’s update offers transparency at checkout, the real battle will be in how the government balances consumer choice with protecting local industries.
Also read: Ramaphosa Calls for Calm as US Tariffs Threaten South African Jobs
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Source: Business Tech
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